The state’s budget wizards say the state will receive $190 million dollars more than what Gov. Kristi Noem outlined in December.
Now, appropriators will fit together the pieces of the state budget. For many, this number makes the case state lawmakers can cut some form of tax.
Noem’s food tax cut is projected to come in around $100 million. That still leaves an extra $90 million if lawmakers went that route.
Two other tax cut proposals also fit into that revenue target.
“I just hope, at the end of the day, we do find a way to find some meaningful relief for the taxpayers of South Dakota," said Republican Rep. Chris Karr. He is pushing for a half percent cut on the state’s 4.5 percent sales tax. That would result in a roughly $170 million tax cut.
Karr suspects revenues will come in higher at the end of Fiscal Year '24 than what the budget committee adopted. Fiscal years start on July 1.
Others want to cut property taxes, which would result in a roughly $70 million cut.
Some are hesitant the revenue projection means the state can start cutting taxes.
“This is just the revenue," said Republican State Senator Jean Hunhoff. She said lawmakers must fund their priorities first, then talk cuts.
“At the end of the day we still have to look at what are the things we are going to fund which are going to be ongoing, which is fiscal year ‘24," Hunhoff added.
Hunhoff worries about budget cuts once federal stimulus dollars run out. She was around when then-Gov. Dennis Daugaard proposed a 10 percent budget cut. She wants to avoid that again.
Still, some say the adopted revenue target puts the state in a good position.
Rep. Linda Duba said lawmakers must address state employee salaries, education, nursing home and community service provider funding as well as Medicaid.
“We’ll really now take things and seriously delve into those budgets and come up with what we think is a reasonable budget for the people of South Dakota.”
Lawmakers have until March 9 to pass a state budget.
